South Korea has recovered only about 2% of debt owed by borrowers whose debt relief was canceled after they were found to have hidden or transferred assets, raising calls for stronger follow-up measures to collect the money once fraud is detected.
A total of 16 borrowers had their New Start Fund agreements canceled through June this year after authorities confirmed they had concealed or gifted assets, according to a settlement review report by the National Assembly’s National Policy Committee on the Financial Services Commission, released on the 8th. Their combined debt principal reached 1.66 billion won, but only 40.2 million won was actually recovered — a…